The Kids Are Gone. Do You Still Need Life Insurance?
If you’re like most parents, your kids are a major part of your life. You’ve watched them grow up, helped them accomplish big things and raised them to be successful adults. Now they’re out of the house and living on their own. While you likely miss them, you also may be excited about your new life as an empty nester.
You might be taking this opportunity to reevaluate your budget and identify expenses that can be cut or reduced. For instance, you may need fewer groceries without the kids in the home. You might be able to transition your kids to their own cellphone plans and car insurance policies. You might even consider downsizing to a smaller home.
One cost that may seem ideal for cutting or reduction is life insurance. After all, if you’re like many Americans, you first purchased life insurance to protect your dependents in the event of your death. Without dependents in the home, life insurance may seem unnecessary.
While there may be good reason to adjust your coverage, you may not want to cancel your life insurance policies altogether. There are many reasons why life insurance is still important even after your kids leave the house. Below are three such reasons. If any of the following sounds familiar, you may want to think twice before canceling your policies.
Your kids aren’t totally independent.
In an ideal world, your kids would graduate from college, start their career and transition seamlessly into a financially independent lifestyle. As you likely know, this isn’t a perfect world.
Today’s young graduates face a variety of challenges that didn’t exist when you were their age. Student loans are a major expense for many young people. The rapidly changing economy is phasing out some careers as fast as it’s creating new ones. Even fresh graduates may have trouble finding a starting point for their career.
It’s not uncommon for grown children to need a little financial help well into their 20s and 30s. While they may not technically be dependents, your kids may still need your safety net from time to time. If you pass away, that safety net could disappear. Life insurance gives them a strong financial foundation even if you’re no longer around.
You have other dependents.
Children aren’t the only people who may rely on your support. In fact, according to a 2013 survey from Pew Social Trends, 15 percent of all middle-aged adults in America are providing financial support to both an elderly parent and a child.1
Your parents may rely on your support, and that support doesn’t have to be financial. You may help your parent with cooking, cleaning or even basic mobility needs. Who would provide that assistance or financial help in your absence? Would your parent have the funds available to get the support they need?
Consider an affordable life insurance policy on yourself that is long enough in duration to likely cover the remainder of your parent’s life expectancy. If you pass away, they’ll have funds available to get the care and help they need.
You’re not done saving for retirement.
Obviously, if you pass away, you won’t need to worry about funding your retirement. However, your spouse will still need funds to retire. And if you pass away with years left in your career, your spouse could miss out on a significant chunk of retirement savings. That could leave them short of their retirement funding target.
Again, consider an affordable, short-term policy to cover the remainder of your career. That way, if you pass away, the death benefit could replace any potential earnings and savings lost. Your spouse gets a secure retirement, and you get peace of mind.
Not sure if your life insurance coverage is still appropriate? Let’s discuss it. Contact us at Ambrose Financial & Insurance Services in Walnut Creek, California. We always enjoy helping our clients prepare for retirement and build a strong financial foundation. Let’s connect today and review your needs and goals.
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CA Insurance License No. 0F95178
15935 – 2016/7/28